Pleasant news to a limited extent

Looks like the provincial government didn’t necessarily get caught up in the federal Liberals’ new mantra that, what the heck, maybe deficit spending isn’t so bad after all. Off in a different direction, Stephen McNeil and crew are unveiling what they are projecting to be a surplus of $17.1 million for 2016-17.

Getting back to balance – if indeed the feat is not “bogus,” as Conservative Leader Jamie Baillie charges – might take some a bit by surprise. Justin Trudeau and the federal team did much to make deficit into less of a dirty word. In fact, the prime minister, after successfully arguing the need for extra stimulus and social spending before the election, touted that message to other world leaders.

That led some to muse whether the provinces might in turn relax the quest to eliminate deficits sooner rather than later. Coincidentally, also Tuesday, Prince Edward Island’s governing Liberals in releasing their budget said they would delay aiming for balance by a year.

Alberta, uncharacteristically, had to dip into the red ink in its forecasts for the coming year due to the continuing sluggish oil outlook.

Baillie and the Conservatives are skeptical about the rather modest surplus forecast by the Liberals in this province. Finance critic Tim Houston called the projections “rosy” and was particularly concerned about what he considered high revenue estimates.

The increase in that area is partly being accounted for in a $234 million increase in tax revenue, mostly from personal income taxes. That in itself will be cause for concern for those who maintain the province can’t make economic headway without lowering tax rates.

At any rate, delivering a balanced budget at this point is an accomplishment, if the forecasts do indeed prove accurate.

But it also comes in the latter half of the government’s mandate, which tends to be when these goals are met. The timing, in fact, will add to the skepticism, since when we head to the polls a sitting government typically feels pressed to show it reached its financial targets.

But the other aspect of this exercise is to see a revived economy – which of course governments play only an indirect part in through reasonable taxes and reasonable regulatory controls. The public, however, does tend to place blame on government when the economy lags.

So hats off for getting us this far, but this government still has a piece to go to gain full marks as economic stewards.